This year has been tough for the EML Payments Ltd (ASX: EML) share price. The payment solution provider's shares have slipped 16.55% year to date.
2021 also brought EML's worst day ever on the ASX. On 19 May 2021, the EML share price plunged a whopping 45.63%. The company went from sitting pretty at $5.15, to close at $2.80, in a single session.
Those along for the ride that day likely remember it well. However, if you were lucky enough to avoid the carnage, here's a run-down of how it happened.
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EML share price's worst day ever
The EML share price's worst day ever followed a 2-day trading halt. EML requested the trading halt after it received notice of "significant regulatory concerns" from the Central Bank of Ireland.
Then, on that fateful Wednesday morning, EML released the news that would see its value drop by nearly half.
EML announced the Central Bank of Ireland was concerned EML's subsidiary, PFS Card Services Ireland, had failed to comply with Anti-Money Laundering and Counter Terrorism Financing frameworks and governance.
Now, the trouble actually started way back in December 2020 when, as a result of Brexit, all of the EML's non-UK-focused operations had to move out of the nation.
As a result, control of the company's European operations was shifted to PFS Card Services Ireland, which is regulated by the Central Bank of Ireland.
Therefore, the future of EML's European business operations – which brought in 27% of EML's revenue in the third quarter of financial year 2021 – could all have been at stake due to PFS Card Services Ireland's failings.
EML commented on the concerns, stating:
Given the timing and early stages of discussion with the CBI, EML is presently unable to estimate the potential direct and consequential costs (including but not limited to legal costs) and impacts of the Correspondence on the Group's consolidated FY21 results.
Has EML recovered from the drop?
Unfortunately for EML, the issues facing PFS Card Services Ireland haven't been resolved.
However, the EML share price has gained 26% since 19 May. EML's shares are currently trading for $3.54 a piece.
That seems to point to the market's concerns over the possible restrictions easing. However, only time will tell if the Central Bank of Ireland's concerns will further harm the EML share price.
